May 2018

Higher Education

Summary of Financial Aid Recommendations


May Revision Proposal

LAO Recommendation

Cal Grant participation

Increases by $76 million in 2017‑18 and $29 million in 2018‑19.

Adopt. Based on preliminary review, participation estimates appear reasonable.

TANF funding for Cal Grants

Decreases federal TANF support by $29 million and increases General Fund support by same amount.

Adopt. Reflects fund swap and has no programmatic effect.

Cal Grant awards for students at private, nonprofit schools

Continues to require nonprofit sector to admit specified number of students with associate degrees for transfer, but revises the targets.

Reject. Minor change to targets does not address underlying problems with proposal.

Short‑term state loans to cover delays in TANF funds for Cal Grant costs

Authorizes Student Aid Commission to receive up to $125 million in interest‑free General Fund loans. Requires loans to be paid back within 90 days.

Withhold. Assessment pending receipt of additional data on underlying cash flow issues.

TANF = Temporary Assistance for Needy Families.